On 1 February 2021, Dr. Thapelo Matsheka, Botswana’s Minister of Finance and Economic Development has presented National Budget for the fiscal year 2021 to the National Assembly. The Budget contains a number of important tax measures. The key proposed tax measures are as follows:

  • Withholding tax rate on dividends to be increased from 7.5% to 10% from 1 July 2021;
  • Value Added Tax (VAT) to be increased from12% to 14% from 1 April 2021;
  • The fuel levy to be raised from BWP 0.12 to BWP 1.12 liter to compensate for zero-rated fuel for VAT purposes from 1 April 2021;
  • Tax amnesty offered to tax payers for 2021/2022 tax year;
  • The individual income tax threshold at which income earners become liable for income tax will be raised from BWP 36,000 to BWP 48,000 from 1 July 2021;
  • Introduction of Sugar-sweetened beverages tax at a rate of BWP 0.02 per gram of sugar above the content of 4 grams of sugar per 100 milliliters;
  • Levy on plastic bag at BWP 0.25 per bag.